Government to set up fund to compensate residents for construction damage

The government is to establish a fund to compensate residents whose properties are damaged as a result of construction works taking place on neighbouring sites.

The Cabinet approved the necessary legal amendments to create the fund, Prime Minister Robert Abela announced at the end of a Cabinet meeting held under the theme “Bis-Saħħa Tiegħek”, marking the first 100 days of the new government.

The fund will be financed through money generated by the construction industry itself. Under the new mechanism, the government will compensate affected neighbours so that they can carry out the necessary repairs as quickly as possible, while the state will assume responsibility for recovering the costs of the damage.

Abela said the mechanism would allow people affected by construction damage to avoid the existing bureaucratic procedures involved in seeking compensation and obtaining a remedy.

The measure is also intended to encourage higher standards and greater accountability among operators in the construction sector.

The Cabinet also approved changes affecting members of the disciplined corps, increasing the pension incentive for officers who remain in service from 23% to 29%.

At the same time, the non-taxable allowance granted for service beyond 29 years will be extended from four years to six years.

The measures apply to members of the Malta Police Force, Armed Forces of Malta, Correctional Services Agency and Civil Protection Department.

Abela said hundreds of officers were already benefiting from incentives introduced since 2023 to encourage experienced personnel to remain in the disciplined services.

 

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